Originally from Dispute Resolution Journal

INTERNATIONAL MARITIME—PUBLIC POLICY— FOREIGN COURT ORDER—COMITY

Under the principle of comity, an arbitration award which orders action in violation of a valid foreign decree will be vacated on public policy grounds. Sea Dragon, a Panamanian corporation, chartered a vessel !o Van Weelde, a Dutch corporation, for shipment of sugar. Sea Dragon demanded payment of about $100,000 still due tor freight. Van Weelde admitted owing the money, but claimed it was foreclosed from paying the debt bv a sequestration order of the Dutch Courts.

(The order had been obtained by Uni-Ocean, a creditor of Sea Dragon, to ensure payment of whatever award was rendered in arbitration between them.) Sea Dragon demanded arbitration of its dispute with Van Weelde, which resulted in an award in Sea Dragon's favor for the total amount due.